Charles Flanagan (Laois-Offaly, Fine Gael)
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I thank the Office of the Ceann Comhairle for allowing me to raise this matter. I am alarmed and perturbed to read reports emanating - from where I am not sure - that farmland and farms will be taken into consideration for the assessment of income for third level students. I am not sure if the Minister of State, Deputy Sherlock, is replying to this matter but I ask him to desist from texting during my contribution.

Seán Sherlock (Cork East, Labour)
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Can I clarify? I am reading a response that is pertinent to the issue Deputy Flanagan is raising. It is in order to assist with the reply. I say that sincerely.

Charles Flanagan (Laois-Offaly, Fine Gael)
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Now that the Minister for Education and Skills is not in the Chamber, I hope the House has the courtesy of the Minister of State listening to the contribution. Otherwise, I will leave it.

Seán Sherlock (Cork East, Labour)
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I am a Minister of State at the Department of Education and Skills. The Minister for Education and Skills, Deputy Quinn, is unavoidably detained elsewhere.

Charles Flanagan (Laois-Offaly, Fine Gael)
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On the basis that the Minister of State is offering me the courtesy of listening to what I have to say, I repeat that I hope the Minister will allay my fears, as one who represents a rural constituency, that this poorly-timed and ill-advised move will not take effect. I represent a constituency with low participation rates in third level education. It is a rural constituency with many farmers and farm families. Should these reports be true and if the Government is considering such proposal it will ensure that many low-income families throughout Laois-Offaly will in effect be disbarred from entering third level education.

The grant system that has been in place for many years is very important to a rural constituency such as Laois-Offaly. I have no difficulty with the income of parents being taken into account but not the farmland. In many respects, the capital asset - the agricultural land - is only material when the land is being sold. The Minister of State is aware that we do not have a high level of land transfer, and when the land is not being sold the capital asset that is a family farm is never taken into consideration. It is a volatile asset in any event and particularly in recessionary times when there is little market for such land.

If the self-employed assessment is to change, will the shop and residence of a shopkeeper be taken into account? I say "No". In the case of a business operating out of an office, will the value of the office be taken into consideration? I do not believe this to be fair or just in any circumstance. Similarly, all farm land, farm buildings and farmhouses should not be taken into consideration in the assessment of students for a grant entitlement.

There is a perception of discrimination against rural Ireland and the Minister of State, Deputy Sherlock, has an opportunity in his reply this evening to kill off that perception and to confirm that the current review group which will report shortly, and the Government, will not take into consideration farm land, the asset of the farm buildings and the farmhouse in the assessment for educational grant purposes.

Seán Sherlock (Cork East, Labour)
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I thank Deputy Flanagan for raising this important matter. The Deputy refers to an announcement last December that the means test for student grants will be amended to take account of the value of certain capital assets as well as income for the 2013-14 academic year. A considerable body of reports over a number of years have strongly recommended the introduction of a capital test for student grants, on the grounds of equity and fairness. The introduction of such a test would create a more equitable basis for means testing where a more complete analysis is undertaken of a family's capacity to support their children in pursuing further or higher education. The Deputy will appreciate, in the context of the current financial climate, the importance of accurately targeting increasingly scarce resources to those who need them most and this has become a high priority. While the introduction of a capital asset test for student grants may have traditionally been perceived as likely to impact in particular on farming communities, I assure the Deputy this is not the object of the proposal. The means test will be applied fairly to all applicants.

Deputy Flanagan may be aware that a dedicated capital asset test implementation group has been established. The group has been charged with bringing forward detailed implementation proposals for new means testing arrangements for student grants, to include the value of assets, for new applicants beginning in the 2013-14 academic year. The group has met on three occasions and its deliberations are ongoing. I anticipate the group will report to the Minister by the summer and will make recommendations on the inclusion or exclusion of various classes of assets. Any proposals will require further Government agreement and will necessitate legislative amendment. It will, therefore, be agreed at Cabinet level.

Charles Flanagan (Laois-Offaly, Fine Gael)
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I have some brief questions about the dedicated capital asset test implementation group which has been established. I ask the Minister of State to confirm who will have the final say, the group or the Minister? I ask the Minister of State to assure the House that equity and justice and fair play will form the basis of this review and I ask him to take into consideration the income rather than assets in this review.

Seán Sherlock (Cork East, Labour)
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The short reply is that any decision of this nature is ultimately a political decision to be decided by Government. We must await the recommendations of the implementation group and have consideration to those recommendations. However, it is ultimately a political decision.

I share the concerns raised by Deputy Flanagan in that I, too, represent a constituency with a significant agricultural output and where for a certain coterie of the farming community, income would be meagre, to be frank about it.

Barry Cowen (Laois-Offaly, Fianna Fail)
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That is the Labour Party position.

Seán Sherlock (Cork East, Labour)
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There has to be some regard to the tools of the trade, as it were, that are necessary to derive that income. The Minister has met with ICMSA representatives and he has had regard to the position espoused by them and the implementation group is working as we speak and we await its recommendations. However, it will be ultimately a decision for Government.